Friday, June 11, 2010

Should you buy insurance from a corporate agent?

Should you buy insurance from a corporate agent?

Yes, you can buy but you must check that it is not one of the 4261 corporate agents whose licence has been cancelled by IRDA, the regulator.

The following news item is an eye opener for those who have to buy the insurance.
“The Insurance Regulatory and Development Authority (IRDA) has said that as many as 4,261 corporate agents, out of the total 7,000 in the country, are not authorized to sell policies from March 31, this year.

The IRDA, which displayed the names of corporate agents that were banned, cautioned the insurance companies and general public not to transact any insurance business through them.

The list of banned agents includes HDFC Bank (General Insurance), Oswal Consultancy, India Bulls Insurance Advisors Pvt Ltd in Mumbai; Prosoft Technologies and Tangent in Bangalore; Rishab Investments and Cosmos Financial Services in Chennai; Pact Brokerage and Atluri Travels in Hyderabad.

"These corporate agencies were due for renewal on or before March 31, 2010 but have not been renewed till date. All these agency licences have been withdrawn," IRDA said in a circular on Tuesday.

According to a senior IRDA official, the policies purchased after March 31 and till date could be valid and the full implications are being worked out.

The business is likely to hit as almost all life and general insurers including Life Insurance Corporation of India engaged these agencies.“

Is it that many of the MLM companies are also affected?

Comments are invited.

Wednesday, June 9, 2010

Lodge your health insurance claim within 7 days Timeframe to Submit documents for filing Health Insurance claims reduced to 7 days from 30 days

You must lodge your health insurance claim within 7 daysTimeframe to Submit documents for filing Health Insurance claims reduced to 7 days from 30 days
You are familiar with the clause which permitted you or expected from you that your health insurance claim should be lodged within 30 days. No one noticed that this clause has been amended to 7 days because claims submitted up to 30 days were continuing to be paid.

Now, in an abrupt move, we understand that insurance companies have suddenly decided to strictly implement the 7 day condition. They have informed the TPAs to treat claims where documents are received after 7 days from the date of discharge as untenable.

You are required to follow this 7 days clause with a view to protect your interest.

We feel that there should be a joint campaign by all insurance companies offering health insurance for the information of policy holders and a separate letter should go to each and every policy holder to make them aware of this clause being implemented.It will keep the number of cases going to Consumer Forum Courts under control.We are sure Consumer Forum Courts will support the policy holders on this issue.